6 Reasons To Place Sustainability At The Heart Of Your Business Strategy
First and foremost, adopting a sustainable business strategy is important because of the incredible social and environmental improvement it can foster. The private sector has a unique opportunity to truly initiate change and solve urgent global issues in a way that individuals, communities, and even governments don’t have the power to do. However, there are more advantages for your business too.
1. Become More Attractive to Investors
Many companies buy into the myth that prioritizing sustainability is simply not profitable. They could not be more wrong. Following the signing of the Paris Climate Agreement and the launch of the UN Sustainable Development Goals in 2015, the pressure placed on the private sector to take responsibility with regards to climate change is only increasing – and investors are responding to this demand. Investment in sustainable assets has grown by 42% between 2018 and 2020, from $12 trillion to $17.1 trillion. This trend is only going to continue. It is undeniably in your company’s best interest to focus on sustainability and not miss out on this excellent opportunity.
2. Brand Value & Reputation will be Enhanced
It is no surprise that providing solutions to consumer desires will ensure your company’s relevance. Nielson has found that a huge 81% of global respondents across gender lines and generations feel strongly that companies should help to improve the environment, meaning that a sustainable focus should be a no-brainer for any company wanting to gain public favour. Moreover, this public demand could result in a financial advantage over your competitors. A McKinsey study has found that upward of 70% of consumers across multiple industries would pay an additional 5% for a green product if it met the same performance standards as non-green alternatives. Not only would acting on sustainable promises increase consumer support, but you are also likely to enhance your reputation with governments.
3. Inspire your Employees & be more likely to Gain & Retain Talent
A sustainable business strategy demonstrates to your employees your company’s commitment to its values. Your team will be assured of your effective leadership and will be motivated and proud to work for a company that they feel is making real, positive change. This sense of purpose means that you will be more likely to retain and attract world-leading talent.
4. Gain a long-term Advantage over Competitors
When it comes to sustainability in the private sector, there is still a huge gap between values and actions. Many companies don’t actually put into practice the sustainable principles they publicize. By building social and environmental concerns directly into your business strategy you will stand apart from the crowd. Startups are in a unique position to be able to incorporate sustainability in products, workplace structure, and supply chain from day 1 – an advantage that many larger companies do not have, making the transition much more difficult. You will come into contact with new, innovative ideas, technologies, and methods that will push your company beyond competitors and provide you with greater longevity.
5. Enhance your Opportunities for Collaboration
Global issues require collaborative, transnational solutions. By committing your company to sustainability, you’re opening up new doors to creative partnerships. Large corporations are seeking to join forces with organizations on many scales and in a variety of industries to work towards a common goal. This is a brilliant opportunity for you to expand your horizons and make new, meaningful business connections.
6. Change is in the hands of Business Leaders – you can make a difference
Ultimately, adopting a sustainable business strategy is the ability to affect meaningful change. The UN calls for investors and corporations to adopt their Sustainable Development Goals, citing that achieving them will not only solve social and environmental issues but will also be a “key driver of global economic growth.”
Are you looking to sustainably scale your business? Check out Floww’s page for startups to discover how you can find funding for your startup.
Header Image via Unsplash by Dmitry Dreyer.